FDIC Law, Regulations, Related Acts

4000 - Advisory Opinions

Pledge of Government Securities for the Purpose of Securing Bank
Deposits In Excess of $100,000

FDIC-90-10

February 16, 1990

Gerald J. Gervino, Senior Attorney

In your letter to us, you inquire concerning the pledging of
government securities to cover deposits in excess of $100,000
maintained by a public unit in your bank. You specifically ask for our
opinion as to whether or not the bank may secure public funds with
government securities to the extent that the funds exceed our insurance
limitations.

The FDIC has no rule or regulation that prohibits a pledge of
government securities for the purpose of securing bank deposits. We
suggest that you may wish to contact local bank regulatory authorities
or local counsel for an opinion with respect to local law.

If you have any further questions, please write or call me at (202)
898-3723.